Yellow Pages, Local Search and. BIA/Kelsey Webinar. Aug. 11, 2010

Transcription

1 Yellow Pages, Local Search and the Path to New Digital Revenues BIA/Kelsey Webinar Aug. 11, 2010

2 BIA/Kelsey 360 Global view of local advertising and media market Yellow Pages, local search, TV, radio, newspapers, mobile and more Experts Experienced analysts in understanding local media business models existing and emerging CPM and performance based 24/7/365 Always available, always open, always listening 1

3 How BIA/Kelsey Works With Global Yellow Pages Companies Extension of client s strategy, marketing and business development staff Benchmarking of existing businesses Competitive intelligence Market sizing Provocative industry recommendations Access to key consultants Access to Forecasts and Proprietary Research Local Commerce Monitor SMBs User View Consumer Trends re: Directive Advertising Mobile Market View Consumer Trends re: Mobile Use Case BIA/Kelsey Annual Forecast: Local Media 2

4 DMS 10: Compelling Headliners With roughly 40 additional industry leaders across more than 20 highly topical sessions 3

5 Today s Speakers Charles Laughlin, SVP and Program Director, The Kelsey Report, and Managing Editor, BIA/Kelsey 4

6 Global Yellow Pages Meta Themes Financial results are driving the need for transformational-rather-than incremental change Companies are working furiously to reinvent themselves as anything but Yellow Pages publisher The industry s future depends on success across a wide range of products and services from social media to reputation management to direct mail DMS 10 will focus on better understanding these and other critical industry trends 5

7 U.S. Local Ad Spend: Five-Year Forecast $170.0 $160.0 $ CAGRs: US$ Billions $150.0 $140.0 $130.0 $120.0 $14.6 $130.2 $128.9 $12.6 $10.9 $129.8 $10.6 $134.1 $10.6 $138.4 $10.8 $144.9 $11.1 U.S. Yellow Pages CAGR -2.6% All U.S. Local Media CAGR 2.7% $110.0 $100.0 $141.7 $117.6 $117.9 $119.3 $123.6 $127.8 $134.3 Yellow Pages $90.0 All Other Media $ Note: Numbers are rounded. Yellow Pages revenue estimates above include all PYP and IYP revenues. 6

8 Global Yellow Pages: US$ Billions CAGRs: Total CAGR -0.5% Print CAGR -6.1% Online CAGR 15.1% Yellow Pages Offline Yellow Pages Online Yellow Pages Total Notes: Yellow Pages revenue estimates above include all PYP and IYP revenues. Numbers are rounded. 7

9 Where We Are in 2010 Total Revenues Through Q AT&T Advertising Solutions (16.7%) SuperMedia (11.4%) Yellow Media (3.4%) PagesJaunes (3.7%) Eniro (13.0%) Seat SpA (3.7%) DexOne (21.2%) Sources: Company reports (2010) Note: Where possible, noncore directory revenues were eliminated. 8

10 Signs of Hope Some reductions in rate of revenue decline Improvements in bad-debt rates Better customer retention figures Upticks in call counts Positive early signs from leads-based sales efforts Greater pace of innovation 9

11 Global Yellow Pages Meta Themes Financial results are driving the need for transformational rather than incremental change Companies are working furiously to reinvent themselves as anything but Yellow Pages publishers The industry s future depends on success across a wide range of products and services from social media to reputation management to direct mail DMS 10 will focus on better understanding these and other critical industry trends 10

12 The Business Is no Longer Yellow Pages Strategically our business is no longer Yellow Pages. It is marketing services. When I came here everyone asked me about the book. I said, I don t care. I am not responsible for the book. I am responsible for the business. And the business is a database and leads generation business. Our plan is to deploy a flexible, scalable approach in offering our multiplatform solution set to meet a range of advertiser requirements. 11

13 Find the Word Pages 12

14 Global Yellow Pages Meta Themes Financial results are driving the need for transformational rather than incremental change Companies are working furiously to reinvent themselves as anything but Yellow Pages publisher The industry s future depends on success across a wide range of products and services from social media to reputation management to direct mail DMS 10 will focus on better understanding these and other critical industry trends 13

15 Media Fragmentation Is Growing 10 Number of Sources Used in Shopping for Local Products or Services Number of Different Sources Used (Past Year) Q1/2007 Q1/2008 Q1/2009 Q1/2010 Source: User View. Wave VI: February 2010 sample 1,002. Methodology: Online. Cosponsor: ConStat. 14

16 Moving From a Listings Foundation 15

17 to a Digital Foundation 16

18 The Goal: Growth 2010 ~2015 Business Population Business Population Print Advertisers Nat l Both Digital (IYP & Other) Advertisers Print Advertisers Both Nat l Digital (IYP & Other) Advertisers Diagram is conceptual. Actual numbers and proportions vary considerably by publisher and market. 17

19 Publishers are innovating are they moving fast enough?

20 Growth Dynamics: Print vs. Digital Margins Print Directories - Historically 40%-50% - Headed into low 30 s? IYP & New Digital - Inconsistent margins so far - Headed into low 30 s? 19

21 Global Yellow Pages Meta Themes Financial results are driving the need for transformational rather than incremental change Companies are working furiously to reinvent themselves as anything but Yellow Pages publisher The industry s future depends on success across a wide range of products and services from social media to reputation management to direct mail DMS 10 will focus on better understanding these and other critical industry trends 20

22 DMS 10: Answering Critical Questions Is mobile Yellow Pages delivering real revenues? Will the ipad change how directory content is delivered? How big will reputation management become in the SMB space? Will the leads-based sales models be a momentum shifter for directory publishers? Can directory publishers compete effectively in social media? Will self-service play a meaningful role within the next five years? 21

23 Questions and Answers Thank you for attending today s Webinar. We will now answer your questions. Key Links DMS 10 CONFERENCE THE KELSEY REPORT CAS YELLOW PAGES BLOG 22